Advertisement
Published in:
17-03-2018
A comment on Paul and Weinbach’s (2005) “Bettor preferences and efficient markets in totals markets”
Published in: Journal of Economics and Finance | Issue 4/2018
Log inActivate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Abstract
Paul and Weinbach (J Econ Financ 29:409–415, 2005) tested the Efficient Market Hypothesis (EMH) in college and arena football betting markets. The authors found that the totals markets were not efficient, with the “over” bet overvalued, but suggested the likelihood that this would change over time as bettors incorporated more information. In this paper, we find, based on a more recent NCAA college football dataset, that the market has largely corrected itself. The totals market in major college football over the period of 2003–2015 shows an efficient market in that neither a naïve strategy of betting “over” nor “under” is profitable.